Problem: Omar buys a basket of oranges on sale for $\$12$ before tax. The sales tax is $5\%$. What is the total price Omar pays for the basket of oranges? (Round to the nearest hundredth or cent.)
Solution: In order to find the total price, first find the amount of sales tax paid by multiplying the sales tax by the original price of the basket of oranges. ${5\%} \times {$12} =$ Percent means "out of one hundred," so $5\%$ is equivalent to $\frac{5}{100}$ which is also equal to $5 \div 100$ $5 \div 100 = 0.05$ Multiply the sales tax you just converted into a decimal by the original price to find the amount of sales tax that must be paid. ${0.05} \times {$12} = {$0.60}$ Add the sales tax you just found to the original price to find the final price Omar paid. ${$0.60} + {$12.00} = $12.60$ Omar needs to pay $$12.60.$